The Role of Branding Popular brand names are vital to the success of a company. –Represent trust, reliability, style, and prices The use of brands has been around for thousands of years. 1

The Role of Branding Brand identity Brand identity is a major part of entertainment marketing. -May buy product with no product knowledge -Ex. Star Wars: People will see latest movie and buy merchandise simply because of the name -Fixed Identity- consistent such as Disney making family friendly products brand identity a consistent image or feeling that consumers recognize when encountering the brand 2 brand mark Entertainment companies must develop an identifiable brand mark. brand mark a brand name and symbol

The Value of Trademarks Symbols that you see every day help identify goods and services you buy. (Trademarks) soundmark a trademark identified by a sound associated with a brand or company Ex. Roaring lion for MGM 3 soundmark motionmark Two other legal “marks” that identify brands or companies include soundmark and motionmark. Shapes can be trademarked also. Ex. Coke bottle, Hershey Kiss motionmark a trademark identified by specific movement associated with a brand or company Ex. Dreamworks coming out of clouds

Entertainment Brands on the Internet Branding on the Internet and in e-commerce is just as important as in conventional marketing. Having a domain name is necessary for a company’s Web site. Music can be challenging because of free downloads. iTunes is an effective brand that lessens the impact of this. 4

Celebrities as Brands Celebrities are not just performers; they are also “brands.” -Certain actors fit with certain types of movies brand extension the development and introduction of new products that expand the brand and take advantage of the recognition and image of an established brand name 5 brand extension Clothing lines by celebrities are examples of the brand strategy called brand extension.

Franchises franchise The concept of entertainment franchise is different from the franchise of the sports world. entertainment franchise a series of films, programs, or character portrayals planned to expand the character’s activities in a series -Applies to television also (Star Trek, DC Superheroes) 6 Franchising is similar to making sequels, but it is planned from the beginning of a series. Ex. Harry Potter, Lord of the Rings, Hunger Games

Crossover Artists Crossover Crossover is related to a performer’s image or brand. crossover an expansion of the popular appeal of an artist or work by achieving success in another market or style Ex. Actor to singer, Athlete to actor, etc. 7 Celebrities expand their markets as much as possible to increase mainstream exposure and stay in the public eye.

Archived Brands The use of archived brands is another brand strategy. Some performers such as Marilyn Monroe and Elvis Presley have become classic brands and marketing icons. The vaults, or archives, of a studio contain entertainment properties that are part of its brand and product line. –Universal’s vault estimated worth is $14 billion 8

Revenue, Profit, and Loss product placement Revenue can include money from product placement. product placement the appearance of a product as a prop in a film or TV show, in exchange for a fee paid by the product’s advertiser 9 gross profit net profit Profit is viewed in two ways—gross profit and net profit. Revenue-total income from sales of goods and services gross profit revenue minus the cost of goods sold net profit gross profit minus expenses

Pricing Strategies and Goals Three types of pricing goals in the entertainment industry include: profit margin the difference between the expenses and the retail price, expressed as a percentage or a dollar amount 10 Return on investment pricing Try to get maximum amount Competition pricing Meet or beat competitor price Net profit pricing –Profit margin –Try to get desired net profit

Pricing in Television and Radio Advertising reach and frequency For media-ad purchases, reach and frequency are the key elements to consider in planning. reach and frequency the number of people exposed to an advertisement and the number of times they are exposed to it -On average it takes 3 exposures to have successful ad. 11

Pricing in the Television Industry-Example 12 Price of AdMediumResult $2.5 million 30 seconds on national TV Higher expense Higher profit $50 30 seconds on local TV at 2 A.M. Lower expense Possibly no profit A greater reach and frequency will contribute to the success of an ad.

Pricing in the Television Industry The general rule is that if a series can stay on the air for three years and/or complete production on 60 episodes, it is a financial success. Real profits are generated in reruns because most production costs have already been paid. Only about one in five shows lasts long enough to produce 60 shows. 13

Pricing in the Film Industry Sources of revenue in the film industry include profits from tickets, rentals, Blu-Ray and DVD sales, foreign distribution, toys, soundtracks, books, video games, merchandise, tie-ins, and other spin-offs. For the exhibitor, 10 to 20 percent of the ticket dollar goes to the house (theater). –More profit is made on concessions 14

Pricing in the Music and Recording Industries On average, the cost of production for a popular album is a minimum of $125,000 Large production and marketing costs must be covered and there must be enough money left for the artist’s royalty payments. The retailer makes a 27 to 37 percent profit on CDs Additional costs for junkets-singer’s public appearances 15

Concert Pricing Pricing concerts and other public performances relies on estimating public demand and trying to match what others are charging. The size of the venue,the cost of production, transportation, and employees are included in the ticket price. Contract agreements with arenas or theaters can include a guaranteed performance fee plus a percentage of concessions for artist. Draw-Expected audience Gate-Ticket sales 16